A Southwest Airlines aircraft is parked at Gate B33, its tail sticking into the sunlight, at Boston Logan International Airport in Boston, Massachusetts, on December 22, 2025.
Austin DeSisto | Null Photo | Getty Images
southwest airlines The airline on Wednesday expected its 2026 profits to soar, far more than analysts expected, as the airline overhauled its half-century-old business model and incorporated new revenue streams such as baggage and seat allocation.
The company is expected to report at least $4 in adjusted earnings per share this year, beating analysts’ expectations of $3.19, and expects capacity to increase by 2% to 3% compared to 2025, according to LSEG estimates.
Southwest Airlines said it expects revenue per seat mile to rise 9.5% in the first quarter, higher than analysts’ expectations of 8.5%. The company expected first-quarter adjusted earnings of 45 cents, beating Wall Street expectations of 33 cents.
Here’s how Southwest Airlines’ fourth-quarter results compare to Wall Street expectations, according to LSEG consensus estimates.
Earnings per share: Adjusted 58 cents vs. expected 58 cents Earnings: $7.44 billion vs. $7.51 billion expected
Southwest Airlines has spent much of the past two years making major changes to its business model, including eliminating its open boarding policy and moving to reserved seating with additional fees for certain spots, including a new section of extra legroom.
Last year, for the first time in its history, the company began charging customers for baggage checks. As airlines face pressure to improve profits, the policy will help the long-established industry stand out as much as its rivals.
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